Select the answer which best completes the following statement: "at any point along the long-run aggregate supply curve...."
A)Expected inflation equals current inflation and current output is below potential output
B)The economy is moving toward its potential output level
C)Current output equals potential output and expected inflation equals current inflation
D)Expected inflation is moving toward current inflation

Question

Quizplus · Accepted Answer

In the long-run aggregate supply curve, the economy is at full employment, meaning current output equals potential output, and expected inflation equals current inflation.

Select the Answer Which Best Completes the Following Statement: "At